Placing result/ Open Offer/ Offer for Subscription

RNS Number : 2840H

Custodian REIT PLC

30 November 2015

 

 

THE INFORMATION IN THIS ANNOUNCEMENT IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION DIRECTLY OR INDIRECTLY IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, JAPAN, THE REPUBLIC OF SOUTH AFRICA, ANY EEA STATE (OTHER THAN THE UK) OR ANY OTHER EXCLUDED TERRITORY.

30 November 2015

£44.25 million raised through Placing, Open Offer and Offer for Subscription

("Custodian REIT" or "the Company")

Result of Placing, Open Offer and Offer for Subscription

Following the announcement of a proposed issue of equity on 5 November 2015, the Board is pleased to announce the placing has closed, raising £44.25 million (before costs and expenses) through the issue of 42,466,411 new ordinary shares of 1p each in the capital of the Company ("the New Shares") under the Placing, Open Offer and Offer for Subscription announced in the Company's November 2015 prospectus ("the Issue").

A total of 42,466,411 New Shares will be issued at a price of 104.2 pence per share, of which 21,570,763 New Shares will be issued pursuant to the Open Offer, 9,525,959 New Shares will be issued pursuant to the Offer for Subscription and 11,369,689 New Shares will be issued under the Placing.

On 18 November 2015 the Company exchanged contracts to acquire 11 UK commercial properties ("the Target Portfolio") for an aggregate consideration of £69.4 million, subject to the availability of the net proceeds of the Issue.  The acquisition of the Target Portfolio is expected to be completed in two tranches, with the Company having unconditionally exchanged contracts to acquire £28 million of assets, funded through a combination of the Company's existing cash resources and credit facilities.  The successful closing of the Issue will enable the balance of the Target Portfolio to be acquired.  The acquisition is expected to complete in early January 2016 and will be financed through a combination of the Issue proceeds and drawing down on the Company's existing credit facilities.

Commenting on the Issue and expected acquisition, Richard Shepherd-Cross, Managing Director of the Fund Manager, said:

"We have been delighted by the positive response from existing shareholders and new investors to the Issue, and thank them warmly for their support.  Since Admission, Custodian REIT has acquired 56 small lot size, regional properties for £149.6 million, consistent with the Company's investment policy and which support the target dividend.  The Board believes the anticipated acquisition of the balance of the Target Portfolio will enhance returns to shareholders by deploying cash, undrawn debt facilities and proceeds from the Issue promptly, further improving dividend cover." 

Applications will be made for 42,466,411 New Shares to be admitted to the premium segment of the Official List of the UK Listing Authority and to trading on the London Stock Exchange plc's main market for listed securities.  Admission is expected to become effective, and dealings in the New Shares to commence, at 8 a.m. on 3 December 2015.

Following this issue, the Company's issued share capital will comprise 235,772,070 ordinary shares.  This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure and Transparency Rules. 

Unless otherwise defined, capitalised words and phrases in this Announcement shall have the meaning given to them in the Prospectus.

An electronic copy of the Prospectus is available on the National Storage Mechanism website at www.hemscott.com/nsm.do. 

- Ends -

For further information, please contact:

Custodian Capital Limited
Richard Shepherd-Cross / Nathan Imlach / Ian Mattioli	Tel: [phone]
	www.custodiancapital.com

Numis Securities Limited
Nathan Brown / Hugh Jonathan	Tel: [phone]
	www.numiscorp.com

Camarco
Ed Gascoigne-Pees	Tel: [phone]
	www.camarco.co.uk

Notes to Editors

Custodian REIT plc is a UK real estate investment trust, which listed on the main market of the London Stock Exchange on 26 March 2014.  Its portfolio comprises properties predominantly let to institutional grade tenants on long leases throughout the UK and is characterised by small lot sizes, with individual property values of less than £7.5 million at acquisition. 

The Company offers investors the opportunity to access a diversified portfolio of UK commercial real estate through a closed-ended fund.  By targeting smaller lot size properties, the Company intends to provide investors with an attractive level of income with the potential for capital growth. 

Custodian Capital Limited is the discretionary investment manager of the Company. 

For more information visit www.custodianreit.com and www.custodiancapital.com.

 

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